WallStSmart

Applovin Corp (APP)vsThe Coca-Cola Company (KO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Coca-Cola Company generates 700% more annual revenue ($49.28B vs $6.16B). APP leads profitability with a 64.3% profit margin vs 27.8%. APP appears more attractively valued with a PEG of 1.33. APP earns a higher WallStSmart Score of 77/100 (B+).

APP

Strong Buy

77

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 4.0Quality: 7.5
Piotroski: 5/9Altman Z: 3.74

KO

Strong Buy

65

out of 100

Grade: B-

Growth: 6.0Profit: 9.5Value: 3.3Quality: 6.0
Piotroski: 6/9Altman Z: 2.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

APPSignificantly Overvalued (-56.9%)

Margin of Safety

-56.9%

Fair Value

$242.94

Current Price

$468.55

$225.61 premium

UndervaluedFair: $242.94Overvalued
KOSignificantly Overvalued (-22.1%)

Margin of Safety

-22.1%

Fair Value

$64.21

Current Price

$78.42

$14.21 premium

UndervaluedFair: $64.21Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APP6 strengths · Avg: 10.0/10
Return on EquityProfitability
266.4%10/10

Every $100 of equity generates 266 in profit

Profit MarginProfitability
64.3%10/10

Keeps 64 of every $100 in revenue as profit

Operating MarginProfitability
78.1%10/10

Strong operational efficiency at 78.1%

Revenue GrowthGrowth
59.0%10/10

Revenue surging 59.0% year-over-year

EPS GrowthGrowth
113.0%10/10

Earnings expanding 113.0% YoY

Altman Z-ScoreHealth
3.7410/10

Safe zone — low bankruptcy risk

KO5 strengths · Avg: 9.4/10
Market CapQuality
$337.40B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
43.4%10/10

Every $100 of equity generates 43 in profit

Operating MarginProfitability
35.1%10/10

Strong operational efficiency at 35.1%

Profit MarginProfitability
27.8%9/10

Keeps 28 of every $100 in revenue as profit

Free Cash FlowQuality
$1.75B8/10

Generating 1.8B in free cash flow

Areas to Watch

APP3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.663/10

Elevated debt levels

P/E RatioValuation
43.3x2/10

Premium valuation, high expectations priced in

Price/BookValuation
74.3x2/10

Trading at 74.3x book value

KO3 concerns · Avg: 3.0/10
Price/BookValuation
10.0x4/10

Trading at 10.0x book value

Debt/EquityHealth
1.413/10

Elevated debt levels

PEG RatioValuation
4.032/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : APP

The strongest argument for APP centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 64.3% and operating margin at 78.1%. Revenue growth of 59.0% demonstrates continued momentum.

Bull Case : KO

The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.8% and operating margin at 35.1%. Revenue growth of 12.1% demonstrates continued momentum.

Bear Case : APP

The primary concerns for APP are Debt/Equity, P/E Ratio, Price/Book. A P/E of 43.3x leaves little room for execution misses. Debt-to-equity of 1.66 is elevated, increasing financial risk.

Bear Case : KO

The primary concerns for KO are Price/Book, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

APP profiles as a growth stock while KO is a mature play — different risk/reward profiles.

APP carries more volatility with a beta of 2.37 — expect wider price swings.

APP is growing revenue faster at 59.0% — sustainability is the question.

KO generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

APP scores higher overall (77/100 vs 65/100), backed by strong 64.3% margins and 59.0% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Applovin Corp

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

AppLovin Corporation is committed to creating a software-based platform for mobile application developers to improve the marketing and monetization of their applications globally. The company is headquartered in Palo Alto, California.

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The Coca-Cola Company

CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA

The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.

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